RG32
Photo by: Duane Daws
South African armoured and mine-protected vehicles company Denel Vehicle Systems (DVS) has won its first order since becoming part of the Denel group at the end of April. "It's a sizeable contract," DVS CEO Johan Steyn told Engineering News Online on Friday.
"We won the contract last month. It's a follow-on contract for RG31 vehicles from a Middle Eastern country."
DVS was previously BAE Systems Land Systems South Africa. The company had retained the three-division structure it had before the take-over. However, what was previously Land Systems South Africa Dynamics was now Denel Mechatronics to prevent confusion with Denel Dynamics, the group's guided weapons, unmanned air vehicles and space business. The other two DVS divisions were now Denel OMC and Denel Gear Ratio.
DVS's current core product line was the RG12, RG31, RG32 and its latest design, the RG21. "We expect to do more sizable business in the Middle East in the next 12 months," Steyn reported. The RG21 was part of the company's marketing drive in the region. "We are planning a customer demonstration in the Middle East in the next two months. We feel fairly positive about that."
The company was hopeful of follow-on contracts for its RG32 vehicle family from its European customers. These would likely happen over the next few years. But, the market for mine-resistant ambush protected vehicles (MRAPs), as the Americans call them, was at present very tough. "The MRAP market is saturated," Steyn explained. "The main market areas are now likely to be in meeting special customer requirements, such as mortar carrier versions of vehicles like the RG31, rather than stock-standard MRAP armoured personnel carriers."
DVS was the third company within the State-owned Denel group to operate in the armoured vehicle realm, along with Denel Land Systems (DLS) and Land Mobility Technologies (LMT). "There is no conflict in products between DVS, DLS and LMT," he assured. "DLS is a complex combat systems house; they run complex systems like the Badger [infantry fighting vehicle] and G6 [self-propelled gun]. That's not the league we operate in. And if you look at LMT's vehicles, there is very little overlap with ours. I don't see any conflict at all."
Likewise, there was no duplication between the gun turret capabilities of Denel Mechatronics and DLS. "Mechatronics deals with remotely operated turrets and DLS with manned turrets. There is no overlap at all," pointed out Steyn. "We'll definitely make a sales breakthrough with our remotely operated turrets within the next 12 months."